Where is the blacksmith?

There is a blacksmith in Sunset Castle, which is the first place to the north of Default Village. The grindstones are used to level up the blacksmith, which increases your chance of success when trying to upgrade your equipment. It also increases the maximum level to which the blacksmith can improve the items.

If you need more detailed information about the values of upgrading at the blacksmith, you can have a look at the wiki page for the Blacksmith.

The recommended level for Sunset Castle is 7, so just keep playing a little and you will get to the blacksmith soon.

The Blacksmith is present in all cities other than Default Village.